Fri, 03 Jun 2022 08:30 PM IST
New Delhi | Jagran Business Desk: The government on Friday has given a go-ahead to the reduction of the rate of interest on the employees' provident fund (EPF) deposits for 2021-22. Now as per the new decision, the rates have dropped to 8.1 per cent from 8.5 per cent. The decision has impacted more than five crore subscribers of the Employees’ Provident Fund Organisation (EPFO). With this, the rate of interest on PF deposits is the lowest in four decades.
The information was conveyed by the Ministry of Labour and Employment regarding the approval of the central government to credit 8.1 per cent rate of interest, instead of 8.5 per cent provided in 2020-21. The ministry of finance received the proposal sent by the Union labour ministry.
Now, after the ratification of the interest rate by the government, the EPFO would start crediting the fixed rate of interest for the fiscal into the EPF accounts.
Meanwhile, back in 1977-78, the lowest rate of interest stood at 8 per cent. The EPFO in March 2020 lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20 from 8.65 per cent in 2018-19. Subscribes of EPFO was getting the same rate in 2016-17, while in 2017-18 subscribers were getting 8.55 per cent.
On the other hand, in 2019-20, the EPF interest rate was the lowest since 2012-13, when subscribers were getting an interest rate of 8.5 per cent. Talking about the year 2015-16, the rate of interest was slightly high as it was 8.8 per cent. For the year 2013-14 and 2014-15, subscribers were getting a rate of interest of 8.75 per cent. The rate of interest in the year 2011-12 stood at 8.25 per cent.
(With agency inputs)